There are very few cryptocurrency insurance firms, and Re protocol aims to be one of the top by offering reinsurance to daily users. Insurance companies use reinsurance to transfer some financial risk they assume to other insurance companies.
According to Investopedia,
“Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit their own total loss in case of disaster.”
What is Re Protocol?
Re protocol is a decentralized insurance/reinsurance firm founded in 2022 to provide blockchain insurance. The motto on its official Twitter handle is “Make the world more resilient by backing real-world risks.”
Re helps connect insurers, capital, and regulators by enhancing industry operations by providing trust and transparency. The platform merges blockchain standardization with traditional practices, empowering stakeholders in reinsurance or insurance digital ecosystems to conduct business uniquely.
The protocol excitedly supports a post by the block on Twitter about revolutionizing finance with blockchain technology. The article supports the tokenization of off-chain assets, something the project is working towards.
How Does it Work?
Re protocol offers members insurance premiums by backing marine, aviation, inland, business owners, general liability, personal and commercial risks, and umbrella liability.
Here is a detailed summary of how Re Protocol operates:
Earning Diversified Returns
When you invest your money in reinsurance, you support various industry insurance projects. As a result, you can earn a yield in USD/USDC, a digital currency type.
Attaining Enhanced ROE via Long-Term Capital
Imagine teaming up with a reinsurance partner who is focused on the future and can adapt quickly. This partner is fully prepared to back up their commitments with enough money. This setup is useful for groups involved in underwriting insurance policies.
Evaluating Insurance Initiatives
You can make more money by looking at how sound insurance programs are doing. When you help check and approve specific parts of the insurance process, you can earn USD/USDC. This role is essential for people who want to ensure things are going smoothly.
Confirming the Viability of Insurance Initiatives
Real people carefully examine insurance plans to ensure everything is safe and reliable. These experts need to prove their identity and show they have specific qualifications. They get rewarded with USD/USDC for ensuring everything is in order.
Generating Reinsurance Profits
An insurance company covers significant risks, like commercial properties valued at up to $10 million. They then get extra backup coverage, known as reinsurance, for up to $5 million. If there’s a significant loss of $6 million on one of those policies, the reinsurer helps by giving back $1 million to cover part of the loss.
To access these services, you can insure with Re or join as a member. To submit an insurance program, there is a form you need to fill out.
To join as a member, you must submit an email address. The team encourages early sign-up for early community rewards.
Re Price Overview
The token is not yet live for trading. There are no recorded transactions on Coingecko or Coinmarketcap; the project is not listed. However, according to its LinkedIn official page, it received seed funding of 14 million via Crunchbase from 7 investors.
Reinsurance using blockchain is inspiring. Considering the project is in its beta phases, investors looking for worthy cryptocurrency projects can try it. Any users or researchers looking for blockchain insurance can try the Re protocol.